Well to answer your question first. Yes, I have noticed a couple of times on movies that there is the intermitent blackouts that you experienced. I just chalked it up to some irregularities in the tape (which i thought was odd,being it DVHS and such). I actually don't use the DVHS tapes that much since I usually record stuff off my local stations and since it's considered analog off the DMS-100 I can't record digitaly anyway's. I have used it to record stuff off of the movie channels etc and it works great. I liked the idea that I could record the movies on the DVHS tape and keep the superior quality and keep the ac-3 dolby soundtrack (if it was sent that way).
I hope they continue to make tapes for it. Or should I just sell it on ebay and cut my losses??
Hope that helps
"With Tivo, it's like having this guy in your house watching TV for you!" -David Letterman